1501.13
Securing bonds by mortgages and trust agreements.

In the discretion of the director of natural resources any
bonds issued under sections
1501.12 to
1501.15, inclusive, of the Revised
Code, may be secured by a trust agreement between the director and a corporate
trustee, which trustee may be any trust company or bank having the powers of a
trust company within or without the state. Such bonds may also be secured by
mortgage on such property wholly acquired through the proceeds of the sale of
bonds. Any such trust agreement may pledge or assign revenues to the payment of
the principal of and interest on such bonds and reserves therefor as provided
in section
1501.14 of the Revised Code but
shall not convey or mortgage any property of the state, except as provided in
sections 1501.07,
1501.11,
1501.12, and
1501.14 of the Revised Code. Any
such trust agreement may contain such provisions for protecting and enforcing
the rights and remedies of the bondholders as are reasonable and proper and not
in violation of law including provisions for issue of additional revenue bonds
for the purposes set forth in section
1501.12 of the Revised Code to be
secured ratably with any revenue bonds theretofore or thereafter issued under
said section, covenants setting forth the duties of the director and chief of
the division of parks and recreation in relation to the acquisition,
improvement, maintenance, operation, repair, and insurance of the lands or
interests therein or public service facilities in connection with which such
bonds are authorized, the custody, safeguarding, and application of all moneys,
the insurance of moneys on hand or on deposit, and the rights and remedies of
the trustee and the holders of the bonds, including therein provisions
restricting the individual right of action of bondholders as is customary in
trust agreements respecting bonds and debentures of corporations, and of the
security given by those who contract to construct the project, and by any bank
or trust company in which the proceeds of bonds or revenues shall be deposited,
and such other provisions as the director deems reasonable and proper for the
security of the bondholders. All expenses incurred in carrying out the
provisions of any such trust agreement may be treated as a part of the cost of
maintenance, operation, and repair of the facilities for which the bonds were
issued.

The director shall covenant and agree to maintain, so long as
there are outstanding any such bonds payable from revenues, adequate fees,
charges, and rentals for the payment of the principal and interest on such
bonds and for the creation and maintenance of reserves therefor and reserves
for operation, maintenance, replacement, and renewal.